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To shift and handover the project activities to a reliable and expert source[Subcontractor] to be handled under a define term and conditions by minimizing the work load and project cost for a good supervision level.
Interesting question Frank!!!
In simple terms is the shift of the company’s activities to subcontractors in order for the company to benefit from the reduction in costs and take advantage of the expertise that has been enjoyed by external specialists.
The trend is that companies are moving away from the old approach of valuing exclusivity and outsourcing some of their activities in order to concentrate to core capabilities and enjoy the above mentioned benefits.
An example that I personally lived (and tested my patience as client to the extreme) was the case of UK banks outsourcing their customer services departments to India. Was it successful? NO as the cultural barrier was massive. Well at least that is my opinion.
Working in The Business process outsourcing(BPO) industry for the last10 years I think I am in a position to answer the question. It is delegating of non core jobs like marketing and customer service to a3rd party vendor. The client sets some targets and guidelines like customer delight survey target, calls to be handled per day, sales per call target . Also what to do if someone does something unethical that affects the Client adversely. Everything happens according to the contract between the client and the outsourcing partner. Both internal and external audits are conducted to check that everything is being done according to the contract.